Meta is asking the California AG to block OpenAI from being converted for profit

Facebook’s parent company Meta is backing Elon Musk’s efforts to block OpenAI’s transformation from a non-profit to a for-profit company.

This was reported by The Wall Street JournalMeta sent a letter to California Attorney General Rob Bonta, arguing that allowing the change would have “seismic implications for Silicon Valley.” While the company asked Bonta to “take direct action,” Musk and former OpenAI board member Shivon Zilis said they are “qualified and well-positioned to represent the interests of Californians on this matter.”

“If OpenAI’s new business model is valid, non-profit investors will reap the same returns as those investing in for-profit companies in the traditional way, while also benefiting from government tax breaks,” Meta wrote.

Meta has become one of OpenAI’s big competitors in the AI ​​market. Musk, meanwhile, was a co-founder at OpenAI before eventually leaving the company, starting competitor xAI, and taking legal action, among other things. looking for an order stop its transition to profit. (Zilis is also a plaintiff in Musk’s lawsuit.)

OpenAI responded publish emails and texts from Musk and argued that “he should be competing in the marketplace, not the courtroom.”